Banks Meaning: Definition, Examples, and Translations
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banks
[bæŋks ]
Definitions
financial institution
Banks are financial institutions that accept deposits from the public, create credit, and provide loans. They play a crucial role in the economy by facilitating transactions and providing services to individuals and businesses.
Synonyms
credit union, financial institution, savings and loan.
Examples of usage
- She deposited her paycheck at the bank.
- The bank offered a variety of loan options.
- He went to the bank to open a savings account.
- Many banks provide online banking services.
physical site
A bank can also refer to a physical site where transactions are conducted. These are typically characterized by their buildings where customers can visit for various banking services.
Synonyms
Examples of usage
- The new bank opened its doors last week.
- We needed to find a bank that was open on Saturday.
- I met her at the bank to discuss our finances.
Translations
To see the translation, please select a language from the options available.
Interesting Facts
Historical Origins
- The term 'bank' comes from the Italian word 'banco', which means bench, referring to where moneylenders used to conduct their business.
- The first true banking system originated in Ancient Mesopotamia, where temples acted as banks to store surplus grain and precious metals.
- In medieval Europe, merchants began using banks for loans and deposits, leading to the growth of modern financial systems.
Economics
- Banks play a crucial role in the economy by providing loans that help individuals and businesses invest and grow.
- They create money through a process called fractional reserve banking, where only a portion of deposits are held in reserve.
- The health of a country's banks is often an indicator of the overall economy, impacting everything from employment rates to inflation.
Cultural Impact
- Banks have been featured in numerous movies and books, often depicted as places of drama or excitement, like heists in films.
- In many societies, the concept of banking influences public trust and economic stability, affecting how people save and spend.
- Cultural norms regarding borrowing and saving vary greatly; in some cultures, debt is frowned upon, while in others, it is seen as a normal part of life.
Science
- Research in behavioral economics explores how people's decisions regarding banks are influenced by psychology and cognitive biases.
- The development of digital banking has changed how consumers interact with money, utilizing technology to streamline services.
- Climate change is prompting banks to invest in sustainable practices, as ecological concerns increasingly become part of financial decision-making.
Technology
- With the rise of fintech, traditional banks are facing competition from tech companies offering innovative digital solutions.
- Blockchain technology is revolutionizing banking by enabling secure, transparent transactions without the need for central authorities.
- Mobile banking apps have made it easier than ever for people to manage their finances on the go, changing the landscape of personal banking.
Origin of 'banks'
The word 'bank' originates from the Italian word 'banco', meaning 'bench'. This was because moneylenders used to conduct their business on benches in public places. The term spread throughout Europe, leading to the establishment of formal banks in the late Middle Ages. Originally, banks were used for the exchange of currency and the safekeeping of money. By the 17th century, the concept of a bank as a place to deposit funds and obtain credit became more formalized. The evolution of banking has continued, reflecting the growth of commerce, trade, and later, modern financial systems. The establishment of central banks further solidified the role of banks in managing the economy.